Eliminate Credit Card Debt

Eliminate Credit Card Debt

Wanna eliminate credit card debt? We can tell you how.

First Things First

The first thing you have to do to eliminate credit card debt is obvious--stop using your credit cards! Of course, that doesn't get rid of your existing credit card debt, but don't worry. There are other ways to get rid of that debt.

One thing you can do on your own is try to transfer your balances to a credit card with a 0% introductory rate, then pay off the balance in full during that introductory period. Just make sure that there's no annual fee and no balance transfer fees. If this won't work, you might need to check into a debt management program designed specifically to eliminate credit card debt. To that end, there are four you can choose from:

• If you are a homeowner, the best way for you to eliminate credit card debt by far is through a debt consolidation mortgage. Under this plan, you borrow the amount of your credit card debt from your mortgage lender. The amount you borrow is added to your mortgage, so you wind up paying off your high-interest debts at the same low interest rate as your mortgage. And don't forget--mortgage interest is tax-deductible. Just something to think about...
• If you have sufficient collateral, a debt consolidation loan might be right for you. This is a loan given to you to eliminate credit card debt. The interest rate is much lower than what you are paying on your credit cards, so you get out of debt in about five years.
• If you have access to a fair amount of cash, just not enough to pay off all your credit card debt, a debt settlement plan might interest you. Under this debt elimination plan, a debt settlement agent will be able to get the total amount you owe on your credit cards reduced by 60-80%. However, in return, your creditors will want the total amount due right away.
• If you're not a homeowner, don't have collateral or access to a lot of cash, a debt consolidation program can help you eliminate credit card debts. It's a sort of "one-size-fits-all" program. Under this plan, a debt consolidation agent contacts your creditors to get you reductions in your interest rates and balances of as much as 57%. Then they put all those lower balances together under one umbrella, and instead of making several monthly payments to your credit card companies, you make one monthly payment to the debt consolidation company. They divide your payment among your creditors, and you can be out of debt in five years.

Once you get enrolled in a credit card debt elimination program, it would be a good idea to get some credit counseling too. That way, you can learn how to use your credit cards wisely. You'll also learn a lot of other things like how to budget and how to save.

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